How long does it take for a house sale to exchange?

What is a house sale exchange?

The exchange of contracts marks the formal legally binding agreement between a homeowner and a buyer over the sale of their home, and it commits the buyer to purchasing your property.

An exchange typically occurs once the seller and buyer have resolved a number of issues, including agreeing on the sale price, conducting legal searches and other work, received some proof from the buyer that they have the funds necessary for the purchase, and more.

How long does the exchange process take?

The exchange process can be fairly lengthy, taking on average at least eight weeks and sometimes up to 12 weeks for everything to be agreed on and signed. When you are ready to sign, or exchange, contracts you can expect it to typically occur in the middle of the day on any weekday – although it could still happen on weekends.

Of course, the precise speed of the exchange process will be dependent on several factors that can either make it faster or longer. There are no laws or regulations that specify that the exchange must happen on a certain date or within a set time.

What factors can speed up or slow down an exchange?

There are several issues that could affect the speed of your sale exchange, ranging from how many buyers are involved in the sale chain through to problems with mortgages.

Size of the buying chain

Property chains occur when the purchase of one house is conditional on the sale of another, creating a chain of buyers and sellers. Any problems with any of the sales in the chain will therefore create the potential for delays in selling your home. This can be avoided when you are simply buying a brand-new house because all you need to do is sell your home and then buy the newly constructed property without a chain.

Problems with the property searches

As part of the home sale process, solicitors will conduct searches with local regulatory authorities and others to determine whether there are any legal issues or other previously undisclosed problems with your house or flat. If any are discovered it can slow down the exchange process. Some buyers take out indemnity insurance to protect them against legal claims for such problems once they moved in.

Problems in the mortgage process

You might have to wait longer to exchange contracts if the buyer is yet to receive a formal mortgage offer to pay for the purchase of your property. In addition, a mortgage lender might value your home at a lower price than you and the buyer previously settled on. If that happens it can lead to further negotiations over the sale which will inevitably delay the date that you and the buyer can exchange contracts.

Are there any alternatives for selling my home?

Yes, you could try selling your home at auction or to a property buying company.

Auctions allow you to get a firm date for when people will bid on buying your house, which can be great if you need certainty on when you can sell. However, you will typically have to set a lower opening bid price than you might think your home is worth, because the auctioneer will use that lower value to try and encourage bids on the property. There’s no guarantee you will make more than this price. And you’ll also have to pay the auctioneer fees.

You could also search for a reputable property buying company. These businesses work by making fast and typically very competitive cash offers to buy flats and houses. They offer several benefits to homeowners including the chance for a quick sale at a good price, and not having to pay any fees or wait a very long for the exchange of contracts.

Be sure to research quick buying companies to find trustworthy buyers – one way to do this is to check with the National Association of Property Buyers. It’s a trade association that sets standards for the quick property buying industry, and if a company is a member you can rest assured they follow the right procedures when buying homes.